Zambeef to expand meat operations in Zambia

Zambeef Products, a Zambian agricultural producer, has unveiled plans to establish a new abattoir as well as a chicken hatchery in the district of Mpongwe, with an investment of $250m, to produce at least one million day-old chicks per week.

The company has submitted an Environmental Impact Assessment (EIA) to the Zambia Environmental Management Agency for the project.

The investment, which is part of the company’s strategy to step up locally-sourced produce, follows the country’s ban on imports of beef and poultry products from Europe over fears of contamination, reported Dow Jones Newswires citing the company’s spokesman Jestu Kotulande.

Earlier this year, the company stated that beef hooves and offal imported from the UK and Ireland were found to contain aromatic aldehyde, a carcinogenic compound sometimes used to embalm bodies; however, the allegations were denied by the UK Department for Environment, Food and Rural Affairs (DEFRA).

Kotulande said, "The new poultry project will enhance our production capacity now that we no longer import any products."

The facility will be based on the Zambeef Mpongwe farm and will feature advanced technology to produce more chicks to cater to the increasing demand in the country.

Currently, the farm does not have chicken operations; the company plans to develop and equip the farm with poultry houses, laying of eggs, hatching and a chicken abattoir.

Zambeef intends to finance the project through internally generated funds and loans from yet to be named international lending institutions.

With this project, the company seeks to continue diversification distribution and sale of poultry products.

In recent years, Zambeef has been strengthening its presence in Nigeria and Ghana to tap into these promising markets.

In February, the company sold a 49% stake in its Zamchick subsidiary to South African chicken processor and marketer Rainbow Chicken for $14m.

Zambeef reported a 20% rise in revenues to $153m in the last financial year.

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Image: With this project, Zambeef seeks to continue diversification distribution and sale of poultry products. Photo courtesy of patrizio martorana.